Our FAQ's are designed to help you find information on our site more easily, providing you links to some of our most commonly used areas and answering the most frequently asked questions.
Q: Do you require investment funds under management as security?
A: No, we do not require investment funds under management.
Q: Do you only lend against London properties?
No. Harrods Bank will consider applications on properties across England and Wales.
Q: Do you lend to foreign nationals?
A: Applicants are normally required to have a substantial footprint in the UK.
(e.g. UK assets, bank account and/or properties).
Q: Do you lend to entities other than individuals?
A: We will consider applications from other entities e.g. Special Purpose Vehicles (SPVs)
and Trusts. We do not normally accept applications from trading companies.
Q: How does the stress test work for people with income in foreign currencies?
A: The stress test is applied to the mortgage repayment. For example, if an applicant earns income in dollars and applies for a mortgage costing £2,000pm, we will ascertain whether the applicant can afford 25% more, i.e £2,500 pm, reflecting an adverse movement in the exchange rate. The percentage applied varies by currency and we can confirm the detail of the test on application. The stress test varies by currency because of political or economic factors:
1. Category 1 (25% stress test): EUR, USD, CHF, SGD, AUD, NZD, CAD, HKD
2. Category 2 (30% stress test): AED, QAR, KWD, JPY
3. Category 3 (requires Credit Committee Approval): All other currencies
Q: What if the client’s income does not pass the stress test?
A: We may still be able to assist if there are other compelling strengths to the application,
for example if the customer holds substantial liquid assets.
Q: Can these cases still be considered following the Mortgage Credit Directive?
A: Yes, the policy and all documentation are fully compliant with MCD.
Q: Are the fees different?
A: The arrangement fee for residential mortgages repaid from foreign currency is 1%,
with no loading for BTL.
Q. Will you consider income streams in several currencies?
A. We will normally consider sterling plus one other currency when conducting the stress test against mortgage costs. In exceptional cases we will consider Sterling plus a maximum of two category 1 currencies.
If you would like any further information or if you have any more please contact a member of the Harrods Bank Ltd team.